Two Canadians Sentenced to Jail Time in US for Bitcoin Theft


Two Canadian nationals have been sentenced to 2 years in a United States federal jail for stealing 23.2 Bitcoin (BTC) by means of a rip-off on Twitter in 2017.

In keeping with the U.S. Division of Justice, on March 17, 23-year-old Karanjit Khatar and 24-year-olds Jagroop Khatkar have been formally sentenced to 24 months in jail and three years supervised launch for cash laundering and conspiracy to commit wire fraud.

Scammers impersonate HitBTC assist employees on Twitter

Starting in October 2017, the British Columbia-residents have been discovered to have impersonated customer support representatives from the Hong Kong-based cryptocurrency alternate HitBTC.

Performing beneath the deal with “@HitBTCAssist,” the pair responded to a request posted to the true HitBTC’s Twitter account regarding cryptocurrency withdrawal processes.

The Khatkars have been in a position to persuade the Oregon resident to ahead delicate info referring to their e mail, HitBTC, and Kraken accounts — which the scammers used to switch 23.2 Bitcoins to Karanjit’s pockets.

Price $119,000 in the present day, the stolen Bitcoin had a worth of roughly $130,000 on the time of the theft.

Stolen proceeds spent on a lavish way of life

The scammers divided the stolen proceeds equally, shortly promoting the Bitcoins to fund an exorbitant way of life together with on line casino playing and luxurious automobiles.

Inside two days of the theft, Karanjit Khatkar bought a Mercedes-Benz for almost $40,000. He additionally gambled with tens of 1000’s of {dollars} whereas visiting high-end casinos in Las Vegas.

Karanjit was arrested on the McCarran Worldwide Airport in Las Vegas on July 18, 2019, whereas Jagroop later appeared at his arraignment voluntarily.

The pair pleaded responsible on Dec. 16, 2019, and have been ordered to pay whole restitution of $184,511.

Crypto scams capitalize on coronavirus panic

Quite a lot of authorities regulators have warned of a latest uptick of scams looking for to capitalize on the widespread fears referring to COVID-19. 

On March 11, the UK Monetary Conduct Authority warned that coronavirus scams might “take many types and may very well be about insurance coverage insurance policies, pensions transfers or high-return funding alternatives, together with investments in cryptoassets.”

Earlier this month, cybersecurity menace researcher DomainTools recognized the coronavirus-themed ransomware “CovidLock.” DomainTools discovered that the web site coronavirusapp.web site installs ransomware on a customers’ system beneath the guise of offering a thermal map displaying the unfold of the coronavirus close by. 

As soon as granted permission to entry a tool’s display screen settings, the ransomware adjustments the lock display screen password and calls for $100 in Bitcoin in alternate for restored entry to the cellphone.

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